By Ethan Faverino |
A federal court has approved a $700 million nationwide settlement resolving a multi-state lawsuit against Google over allegations that the technology company unlawfully monopolized Android app distribution and in-app payment services.
Arizona was among the states that helped bring the case against Google in 2021, joining a coalition of attorney generals representing all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
The lawsuit alleged that Google used its control over Android app distribution and Google Play billing to limit competition, reduce consumer choice, and charge consumers as much as 30% on certain transactions.
The settlement, approved August 18, ends a case that has been ongoing for approximately five years and establishes a $700 million fund to provide relief to eligible consumers nationwide.
Antitrust & Privacy Unit Chief Robert Bernheim and Senior Litigation Counsel Jayme Weber handled the case on behalf of Arizona.
Under the settlement, most of the $700 million fund will be distributed directly to consumers who made qualifying purchases through Google Play between August 16, 2016, and September 30, 2023.
Consumers who lived in Arizona or another participating jurisdiction during the relevant period may be eligible to receive a payment.
Most eligible consumers will not need to submit a claim form. Payments are expected to be distributed through electronic payment services, including PayPal and Venmo, according to the settlement distribution plan.
The settlement also requires Google to make significant changes to its business practices involving the Android ecosystem.
For at least five years, app developers will be permitted to use alternative billing systems, tell consumers about lower prices available outside Google’s billing system and distribute their apps through competing app stores without facing retaliation from Google.
Android users will also be permitted to download apps from sources outside the Google Play Store for at least seven years.
The changes are intended to provide consumers and app developers with greater choice in how applications are distributed and how purchases are processed.
The case was brought under the states’ parens patriae authority, which allows attorneys general to bring certain claims on behalf of consumers living in their respective jurisdictions.
The states alleged that Google’s practices resulted in consumers paying more for apps and in-app purchases while limiting their ability to choose alternative app stores and payment systems.
The states also alleged that Google made misleading representations concerning the risks of obtaining Android applications outside of the Google Play Store and regarding its billing practices.
Google has denied wrongdoing and, under the court’s final judgment, the settlement is not an admission or concession by Google of liability, fault, or wrongdoing.
U.S. District Judge James Donato of the Northern District of California issued the final approval order on August 18, funding the settlement and its distribution plan to be fair, reasonable, and adequate.
The court appointed Berkeley Research Group to assist the states with implementing the distribution plan and continued the appointment of Verita Global as settlement administrator.
The court will retain jurisdiction over the settlement’s implementation and distribution of the funds.
The court’s order also provides for a potential holdback of $93.62 million from an initial distribution if payments begin before a final ruling on attorney’s fees, costs, and incentive awards.
Any amount ultimately not awarded from that reserve would be returned to the settlement fund for subsequent distribution to eligible consumers.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
